UPDATE: RBC Capital Markets Upgrades St. Jude Medical

In a report published Tuesday, RBC Capital Markets analyst Brandon Henry upgraded

from Underperform to Sector Perform, raising its price target from $44.00 to $64.00. According to the report, the upgrade was based on the results of the analyst's Dec. 2013 EP survey. STJ was downgraded in April 2013 due to concerns about durability of STJ's Durata lead. While the Dec. survey does not dismiss these concerns, they are not expected to impact market share in 2014. “While our survey work a year ago showed heightened concern about the durability of the Durata lead and the potential for U.S. ICD share loss, STJ was able to weather the controversy and maintain share in the U.S. market,” the report noted. “For 2014, our survey is pointing to a similar outcome. We believe that our EP survey is pointing to stable share trends for two reasons: 1) data out of HRS last May and recent performance reports from the company point to the durability of Durata holding up longer-term, reducing the risk of a recall; and 2) STJ continues to take share in the tri-chamber (CRT-D) segment of the market, owing to its unique quadpole technology, offsetting any loss in the single/dual chamber market.” Some highlights from the report included: -”Given our survey results, we see minimal sales and EPS risk.” -”Sector multiple now warranted. Raising price target to $64.” -”Stable end markets and market share, supported by our recent CRM survey work.” STJ closed Monday at $65.33 with shares trading up at 2.66 percent.